Japan's Mitsui OSK Lines (MOL), the world's second-largest ship owner by fleet size, is keen to build ships in India and is exploring opportunities to develop roll-on, roll-off (RORO) terminals as well as strengthen inland logistics services to expand its leadership in shipping automobiles from the country, said president and CEO Jotaro Tamura.
"We are definitely interested in building ships in India," he said in an interview on Tuesday, adding, "We are open and positive." With 13 vessels flying the Indian flag, MOL is currently the fourth-largest ship owner operating in the country.
Alternatives for Asia
"We have to understand how things will happen in reality in India and then build confidence that we can move together. Currently, shipbuilding is concentrated in China, Korea and Japan. From a global perspective, it is positive to have another country developing shipbuilding capabilities," noted Tamura, who took over as the company's president and chief executive officer last month.
"It is a matter of understanding the detailed plan, how it works, and then deciding how we can make progress on shipbuilding in India," he added.
Referring to the feeder container ships ordered by French shipping line CMA CGM at Cochin Shipyard, Tamura called it a "good start" but said MOL would need to evaluate the types of ships suitable for the current stage of India's shipbuilding industry.
Indian shipbuilders, according to Tamura, need to take "the right steps".
"You can't simply jump to very high-specification or technically complex vessels from the beginning. I don't expect Indian yards to compete immediately with high-spec ships built in other countries. Over time, they will develop those capabilities," he added.
"We have to understand their plans, what they aim to achieve in the early stages, and whether it aligns with our interests," he said, adding building bulk carriers could be a practical starting point to boost ties between Indian shipyards and global fleet owners.
In April, Ravi Mehrotra, founder and executive chairman of Foresight Group, which is developing a port at Bhavnagar, had told ET that MOL plans to set up a RORO terminal at the port to support automobile exports.
MOL currently uses ports at Mundra, Pipavav and Mumbai on the west coast, and Ennore and Chennai on the east coast for car exports from India, where it commands around 50% market share.
"We are the biggest player in India's car export transport market. Car manufacturing in India is growing, not only for the domestic market but also for exports, and we want to do more," Tamura said.
Scope to develop logistics
"To support our customers, it is not just shipping but also domestic logistics, because logistics infrastructure in India still has scope for development. We are exploring becoming more of a logistics solutions provider for our customers, and terminals and inland logistics are areas we want to enter," he added.
Calling the country a "priority" region in MOL's corporate growth strategy, Tamura said that the company would continue looking for opportunities to register more ships under the Indian flag.
"The breakthrough we achieved in the last couple of years through Indian-flag vessels is a milestone, and we want to continue moving forward," he said, acknowledging the government's subsidy scheme aimed at promoting Indian flagging.
Last week, the ministry of ports, shipping and waterways extended the scheme by five more years after the expiry of its initial term.
"Based on the scheme, we have made progress. So, the extension is positive. It's good and we want to continue benefiting from it," Tamura said.
"We are definitely interested in building ships in India," he said in an interview on Tuesday, adding, "We are open and positive." With 13 vessels flying the Indian flag, MOL is currently the fourth-largest ship owner operating in the country.
Alternatives for Asia
"We have to understand how things will happen in reality in India and then build confidence that we can move together. Currently, shipbuilding is concentrated in China, Korea and Japan. From a global perspective, it is positive to have another country developing shipbuilding capabilities," noted Tamura, who took over as the company's president and chief executive officer last month.
"It is a matter of understanding the detailed plan, how it works, and then deciding how we can make progress on shipbuilding in India," he added.
Referring to the feeder container ships ordered by French shipping line CMA CGM at Cochin Shipyard, Tamura called it a "good start" but said MOL would need to evaluate the types of ships suitable for the current stage of India's shipbuilding industry.
Indian shipbuilders, according to Tamura, need to take "the right steps".
"You can't simply jump to very high-specification or technically complex vessels from the beginning. I don't expect Indian yards to compete immediately with high-spec ships built in other countries. Over time, they will develop those capabilities," he added.
"We have to understand their plans, what they aim to achieve in the early stages, and whether it aligns with our interests," he said, adding building bulk carriers could be a practical starting point to boost ties between Indian shipyards and global fleet owners.
In April, Ravi Mehrotra, founder and executive chairman of Foresight Group, which is developing a port at Bhavnagar, had told ET that MOL plans to set up a RORO terminal at the port to support automobile exports.
MOL currently uses ports at Mundra, Pipavav and Mumbai on the west coast, and Ennore and Chennai on the east coast for car exports from India, where it commands around 50% market share.
"We are the biggest player in India's car export transport market. Car manufacturing in India is growing, not only for the domestic market but also for exports, and we want to do more," Tamura said.
Scope to develop logistics
"To support our customers, it is not just shipping but also domestic logistics, because logistics infrastructure in India still has scope for development. We are exploring becoming more of a logistics solutions provider for our customers, and terminals and inland logistics are areas we want to enter," he added.
Calling the country a "priority" region in MOL's corporate growth strategy, Tamura said that the company would continue looking for opportunities to register more ships under the Indian flag.
"The breakthrough we achieved in the last couple of years through Indian-flag vessels is a milestone, and we want to continue moving forward," he said, acknowledging the government's subsidy scheme aimed at promoting Indian flagging.
Last week, the ministry of ports, shipping and waterways extended the scheme by five more years after the expiry of its initial term.
"Based on the scheme, we have made progress. So, the extension is positive. It's good and we want to continue benefiting from it," Tamura said.
